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HomeMy WebLinkAboutresolution.council.061-96 ~. ~\. e e RESOLUTION NO. 61 (Series of 1996) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADQ, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF ASPEN AND PITKlN COUNTY FOR THE DISTRIBUTION OF USE TAX PROCEEDS WHEREAS, there has been submitted to the City Council an Agreement for Distribution of Use Tax Proceeds between the Board of County Commissioners of Pitkin County, Colorado and the City Council of the City of Aspen, Colorado, a true and accurate copy of which is attached hereto as Exhibit "A NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: That the Mayor be and is hereby authorized to execute on behalf of the City of Aspen an intergovernmental agreement between the City and Pitkin County for the distribution of sales tax proceeds. ~S~:::::: I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen at a meeting held October 28, 1996. ~ x1d~ Ka yn S: Koch, City Clerk e e e , t; ~~ AGREEMENT FOR DISTRIBUTION OF USE TAX PROCEEDS V S This Agreement is entered into this day of , 1996, by and between the Board of County Commissioners of pitkin County, Colorado (the "Board") and the City Council of the City of Aspen, Colorado (the "Council"). RECITALS Pitkin County (the "County") has adopted and the electorate has approved a 3% use tax as authorized by C.R.S. S 29-2-101, et.~. This use tax has been in effect since January 1, 1989, and will expire on December 31, 1998. A citizens task force working with County staff developed a 20-year plan of rehabilitation and safety improvements to bring County roads up to an acceptabk standard (the "Road Plan") and recommended funding the plan with a property tax increase and an extension and modification of the County's existing 3% use tax. The Board, by adopting Resolution # 96-213, will seek authorization for the extension and modification of the 3% use tax from county electors at the general election scheduled for November 5, 1996. If approved, the use tax will be extended to December 31,2016. The existing use tax and its extension provides for a county use tax on motor and other vehicles, and on building and construction materials subject to specified conditions. By operation of an earlier agreement between the Council and the Board, proceeds from the existing use tax are distributed to pitkin County requiring that at least 50% of the net revenue received will be used solely for improvements to State Highway 82 within Pitkin County and the remainder will be used solely for capital replacement and improvement of county roads and bridges, to retire debt incurred for such purposes, and to defray the costs of tax collection. As a result of past investment of use tax proceeds on improvement projects on State Highway 82 and increased participation by the Colorado Department of Transportation in State Highway 82 improvements projects, it is no longer necessary nor 1 e e e efficient to require 50% of the use tax proceeds to be dedicated to State Highway 82 improvements. The Council and the Board have therefore entered into this Agreement with the intent and understanding that the previous Agreement dated October 10, 1988, concerning distribution of use tax proceeds will be no longer binding and that the distribution of proceeds from the existing use tax and the extension of that tax will occur as described herein. The Council and the Board recognize that before this Agreement can become effective and replace and rescind the terms of the October 10, 1988 agreement, th~ electorate of Pitkin County must approve the use tax extension at the general election scheduled for November 5, 1996. The municipalities within Pitkin Coun1y will not be prohibited from imposing their own use taxes during the period that the county use tax is in effect. Rehabilitation and safety improvements to County roads and bridges will benefit residents and visitors of the Ci1y of Aspen, as well as other residents and visitors of the Roaring Fork Valley, who use the road system; and therefore, the distribution of the proceeds of the Pitkin County use tax as specified in this Agreement is to the benefit of the City of Aspen. NOW, THEREFORE, the parties hereto agree as follows: 1. This Agreement shall replace and rescind the earlier agreement between the Council and the Board concerning distribution of use tax proceeds, dated Octob~r 10, 1988. However, before this Agreement shall become effective the electorate of the County must approve the use tax extension and modification at the general election scheduled for November 5, 1996. 2. The 3% use tax that is the subject of this Agreement shall be effective frorp the date of January 1, 1989 and shall continue in effect through the last day ()f December, 2016, unless and until earlier repealed. 2 e . e 3. All 3% use tax proceeds shall be distributed to Pitkin County, except that the Town of Basalt will receive the same proportion of use tax proceeds as it receives of sales tax proceeds, unless otherwise agreed to by Pitkin County and the Town of Basalt in accordance with eR.S. 9 29-2-104 (2), and 23% of the annual net revenue collected for the years 1997 through 2016 will be distributed to the City of Aspen for City streets. The Town of Snowmass Village will receive no use tax proceeds. 4. The revenues derived by the County from its 3% use tax shall be segregated in a separate "use tax capital improvement fund" created in accordance with eR.S. 9 29-2-111. After defraying the costs of collecting and accounting for such tax the net revenue shall be used solely for the following purposes: (1) to make the distributions to municipalities pursuant to Paragraph 3 of this Agreement; (2) at least 10% of the net revenue received will be used solely for enhancements to State Highway 82 within Pitkin County, such enhancements to be jointly agreed upon by the City of Aspen, the Town of Snowmass Village, and Pitkin County; (3) up to an additional 10% of the net revenue received may be used to fund roadway-related bike and pedestrian improvement of county roads and bridges; and (4) the remainder will be used solely for the rehabilitation and safety improvement of County roads and bridges. The net revenue may also be used to retire debt incurred for any of the purposes above; however, use of any of the amount to be distributed to the City of Aspen to retire debt shall require the prior written authorization of the Council. 5. Rehabilitation and safety improvements to County roads and bridges will benefit residents and visitors of the City of Aspen, as well as other residents and visitors of the Roaring Fork Valley, who use the road system; and therefore, the distribution of the proceeds of the Pitkin County use tax as specified in this Agreement is to the benefit of the City of Aspen. 6. The City of Aspen shall cooperate with Pitkin County in the collection and administration of the tax on building and construction materials; provided, however, that the City shall be fully reimbursed for its cost of collection from the proceeds of th,e tax. 3 e e e 7. If any provision of this Agreement or the application thereof to any person or circumstances is held to be invalid, such invalidity shall not affect the other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications, and to this end the provisions of this Agreement are declared to be severable. 8. The parties agree that in the event of a breach or default by any party under any provision of this Agreement, they shall be entitled to an injunction to prevent default or further default, damages and attorney's fees, as the case may be, and also to a decree for specific performance of any of the obligations hereunder. 9. Each party represents that it has the specific power and authority to enter into and consummate this Agreement according to law, and that it has followed proper legal procedures to authorize those persons whose names are subscribed below to execute this Agreement, and obligates that party to perform this Agreement. 10. This Agreement shall be recorded in the Office of the Pitkin County Clerk and Recorder promptly after its execution. 11. This Agreement shall be binding upon the successors, representatives and assigns of the parties, and shall only be modified by writing, duly executed and approved by each of the parties hereto. The City Council of Aspen, Colorado By: John Bennett, Mayor Date A TrEST: Kathryn Koch, City Clerk Board of County Commissioners of Pitkin County, Colorado By: James R. True, Chairman Date 4 e e . A TrEST: Silvia Davis, Clerk & Recorder IIj/misc corresp/usetax.azr 5